I'm wondering if I should be worried. I made about $1800 babysitting last year and didn't report it... is the IRS gonna come after me now?

As someone who's been through this exact situation, I can confirm you're on the right track! Yes, you absolutely need to report that $2700 as self-employment income on Schedule C, even without a 1099. The IRS considers all income taxable regardless of whether you receive forms. A few tips from my experience: - Keep detailed records of all your babysitting-related expenses (mileage, supplies, etc.) - they add up quickly - You'll owe self-employment tax (about 15.3%) on your net profit after expenses - Since you earned over $600, you should consider making quarterly estimated tax payments going forward to avoid underpayment penalties next year - The family should have given you a 1099-NEC since they paid you over $600, but their oversight doesn't change your reporting obligation Don't stress too much - this is a common situation and as long as you report everything honestly, you'll be fine. The IRS actually appreciates when people proactively report income that might otherwise go unreported!

I'm dealing with a similar situation but mine is even more complicated - I missed RMDs for TWO years on my inherited IRA because I didn't even know I was supposed to be taking them! Just found out when I was organizing my finances for tax season. Has anyone successfully gotten penalty waivers for multiple missed years? I'm terrified about the potential penalties stacking up. My financial advisor said I should take all the missed distributions immediately and file Form 5329 for both years, but I'm worried the IRS won't be as forgiving for a two-year oversight. The amounts aren't huge (maybe $800 total across both years) but at 25% penalty that's still $200 I really can't afford right now. Any advice on how to approach this with the IRS?

I'm in a very similar boat - missed my RMD for 2024 on an inherited IRA and just discovered it when preparing my taxes. Reading through all these responses has been really helpful! One thing I wanted to add is that I called my IRA custodian (Fidelity) and they were actually quite helpful in explaining the process. They confirmed that taking the missed distribution ASAP is step one, and they were able to calculate exactly what my RMD should have been based on the account balance at the end of 2023. They also mentioned that they can provide a letter documenting when I took the late distribution, which might help support the reasonable cause argument on Form 5329. For anyone else dealing with this - don't panic! From what I'm reading here and what Fidelity told me, the IRS seems pretty reasonable about first-time RMD mistakes, especially when you correct them quickly and file the proper paperwork. @Eva St. Cyr - your RMD amount is pretty small, which should work in your favor. The IRS tends to be more understanding about honest mistakes on smaller amounts versus someone who missed a huge distribution.

Just a thought - did the 1099-MISC list the payment in Box 3 (Other Income) or somewhere else? That could give you a clue about how the city views these payments.

I've been through a similar situation with city rebates and the 1099-MISC issue. The fact that your city issued a 1099-MISC is a strong indicator that they're treating these as taxable income rather than true purchase price reductions. For your home improvement rebate, since the city is essentially paying you a percentage of costs rather than the vendor reducing their price, it's likely considered a government subsidy or grant payment. The tree planting rebate is similar - it's an environmental incentive payment from the city. One thing to consider is whether any portion might qualify for basis adjustment instead of income. For permanent improvements to your property, sometimes you can reduce your cost basis by the rebate amount rather than claiming it as income, but this gets complicated and you'd want to verify this applies to your specific situation. Given the complexity and the 1099-MISC, I'd recommend getting professional guidance on this one. The distinction between rebates, subsidies, and grants can significantly impact your tax liability.

Has anyone used the free tax record service on IRS.gov to see what gambling forms have been reported for them? I'm wondering if I should check mine before filing to make sure everything matches up.

Great advice from everyone here! Just wanted to add that if you're using TurboTax like you mentioned, they actually have pretty good guidance for gambling income. When you get to the "Other Income" section, there's a specific pathway for gambling winnings that walks you through everything step by step. One thing to keep in mind - even though you won $8,750, you'll be taxed on that amount at your marginal tax rate (so if you're in the 22% bracket, expect to owe around $1,925 in federal taxes on those winnings). State taxes vary depending on where you live, so factor that in too. Also, make sure you keep really good records of your gambling activity going forward. The IRS can be pretty strict about documentation if they ever audit gambling income, so having detailed records of wins/losses, dates, and amounts will save you headaches later.

I'm in this exact situation - our income jumped from around $180k to $240k and suddenly we owe instead of getting a refund! Has anyone tried adjusting withholdings to account for this? I'm thinking of changing my W-4 to withhold an additional $200 per paycheck to avoid owing next year.

I went through almost the exact same situation two years ago - income jumped from $165k to $225k and suddenly owed $800 when we'd always gotten refunds before. The shock is real! What helped me understand it was realizing that our 401k contributions were still doing their job (reducing taxable income), but we were losing other benefits I didn't even know we had. The student loan interest deduction completely disappeared at our new income level, and we lost some education credits for my spouse's graduate courses. The other big factor was that more of our income was now taxed at higher marginal rates. When you're at $175k vs $228k, a much larger chunk of that income falls into the 24% bracket instead of the 22% bracket. That alone can create a significant difference in your tax liability. I'd definitely recommend running the numbers on adjusting your withholdings for 2025. We ended up increasing our 401k contributions slightly and adjusted our W-4 withholdings to account for the higher tax burden at our new income level.